Love your work kobie. What do use use to trade, ETFs, options,
futures?????
Main problem I have with the Dow is that it is easier for
"THEM" to manipulate than the $SPX, $COMP, $RUT etc. [hang on, my
aluminium foil hat fell off
]
Now on the other hand, perhaps the Dow is doing better precisely
because the few people actually in this market are moving out of
'riskier' smaller stocks and into the big Dow 30 where they think
there is a bit less risk?
Posted by lessarda on 21st of Jan 2011 at 12:55 pm
GE reported a 1% increase in revenue and about a 50% increase in
net income and the stock is up 6%. Look inside the earnings and you
see almost 2/3 of the increase came from GE Capital,
the financing unit. So, on mediocre industrial topline growth
and lower losses in the riskiest elements of the company, investors
seem to be buying positive guidance and trusting that the
industrial components will improve going forward.
The Dow 30 might be like the Nifty Fifty of the 70's --
just the last to break down.
GE's Capital division has always been the big winner for the
company for years. In fact at 2/3s may be a bit lower than I recall
from a historical view.
Posted by lessarda on 21st of Jan 2011 at 01:09 pm
The 'riskiest elements' are still real and the company is like a
shadow bank. We'll see how long the implicit and explicit
government aid can hold things up. They hope it's long enough to
earn their way past the write-downs; not sure the market will wait
that long.
spx5,bull flag
Posted by kobie on 21st of Jan 2011 at 12:37 pm
Made a earliar post about a potensial bull flag, which raised eyebrows... I can now see a potensial falling wedge?
Lets see if it plays out...
Dow easier to manipulate?
Posted by perthx on 21st of Jan 2011 at 12:44 pm
Love your work kobie. What do use use to trade, ETFs, options, futures?????
Main problem I have with the Dow is that it is easier for "THEM" to manipulate than the $SPX, $COMP, $RUT etc. [hang on, my aluminium foil hat fell off
]
Now on the other hand, perhaps the Dow is doing better precisely because the few people actually in this market are moving out of 'riskier' smaller stocks and into the big Dow 30 where they think there is a bit less risk?
Good point -- look at GE today
Posted by lessarda on 21st of Jan 2011 at 12:55 pm
GE reported a 1% increase in revenue and about a 50% increase in net income and the stock is up 6%. Look inside the earnings and you see almost 2/3 of the increase came from GE Capital, the financing unit. So, on mediocre industrial topline growth and lower losses in the riskiest elements of the company, investors seem to be buying positive guidance and trusting that the industrial components will improve going forward.
The Dow 30 might be like the Nifty Fifty of the 70's -- just the last to break down.
ge 's2/3 from Capital side
Posted by perthx on 21st of Jan 2011 at 01:14 pm
GE's Capital division has always been the big winner for the company for years. In fact at 2/3s may be a bit lower than I recall from a historical view.
GE also, just got a
Posted by ditch on 21st of Jan 2011 at 01:02 pm
GE also, just got a sweetheart deal with the white house.
GE
Posted by hazbin1 on 21st of Jan 2011 at 01:01 pm
like all of the 2 big to fail banks, ge capital is allowed to 'manage' the valuation of 'bad' assets. best u read between the lines here.
Exactly
Posted by lessarda on 21st of Jan 2011 at 01:09 pm
The 'riskiest elements' are still real and the company is like a shadow bank. We'll see how long the implicit and explicit government aid can hold things up. They hope it's long enough to earn their way past the write-downs; not sure the market will wait that long.
lessarda, thnx......wow that was a mouth full! I dont know much about fundamentals.
Posted by kobie on 21st of Jan 2011 at 01:00 pm
perthx, trading futures.
Posted by kobie on 21st of Jan 2011 at 12:48 pm
I look at both charts and then trade the best setup of the two. Sometimes the one gives clues to what the other is about to do.
I dont worry about manipulation, the Fed, Pomo, full moon.... just look at the chart. O... I try not to watch CNN.